You can save your Microsoft account (formerly "Windows Live ID") password on your Xbox 360 console so that you can sign in to other Microsoft services. However, if you no longer want to store your Microsoft account password on your console, you can remove it. Saving your Microsoft account on your console is not related to signing in to your Xbox LIVE profile or gamertag; it only affects Microsoft services such as Messenger. If you remove your Microsoft account password from your console, you’ll be prompted to enter it when you sign in to Microsoft services on your console.
Note For information about how to require your Microsoft account password to sign in to your profile, see Password-protect your Xbox LIVE profile .
Remove your Microsoft account password from your Xbox 360 console
Here's how:
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